The beginning inventory for Midnight Supplies and data on purchases and sales for a three month period are as follows:
|
Date |
Transaction |
Number of Units |
Per Unit |
Total |
|
| Jan. | 1 | Inventory | 7,500 | $ 75.00 | $ 562,500 |
| 10 | Purchase | 22,500 | 85.00 | 1,912,500 | |
| 28 | Sale | 11,250 | 150.00 | 1,687,500 | |
| 30 | Sale | 3,750 | 150.00 | 562,500 | |
| Feb. | 5 | Sale | 1,500 | 150.00 | 225,000 |
| 10 | Purchase | 54,000 | 87.50 | 4,725,000 | |
| 16 | Sale | 27,000 | 160.00 | 4,320,000 | |
| 28 | Sale | 25,500 | 160.00 | 4,080,000 | |
| Mar. | 5 | Purchase | 45,000 | 89.50 | 4,027,500 |
| 14 | Sale | 30,000 | 160.00 | 4,800,000 | |
| 25 | Purchase | 7,500 | 90.00 | 675,000 | |
| 30 | Sale | 26,250 | 160.00 | 4,200,000 | |
| Instructions | |
| 1. | Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. |
| 2. | Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system. |
| 3. | Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the nearest cent and use that amount in subsequent computations. |
| 4. | Compare the gross profit and the March 31 inventories. |
In: Accounting
Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:
| Amount | ||
| Total sales revenue | $ | 1,156,000 |
| Selling price per surfboard | $ | 340 |
| Variable selling expense per surfboard | $ | 40 |
| Variable administrative expense per surfboard | $ | 10 |
| Total fixed selling expense | $ | 280,000 |
| Total fixed administrative expense | $ | 250,000 |
| Merchandise inventory, beginning balance | $ | 94,000 |
| Merchandise inventory, ending balance | $ | 114,000 |
| Merchandise purchases | $ | 360,000 |
Required:
1. Prepare a traditional income statement for the quarter ended May 31.
2. Prepare a contribution format income statement for the quarter ended May 31.
3. What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter?
In: Accounting
Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:
Amount
Total sales revenue $800,000
Selling price per surfboard 400
Variable selling expense per surfboard 50
Variable administrative expense per surfboard 20
Total fixed selling expense 150,000
Total fixed administrative expense 120,000
Merchandise inventory, beginning balance 80,000
Merchandise inventory, ending balance 100,000
Merchandise
purchases
320,000
In: Accounting
Haaki Shop Inc. is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:
| Amount | ||
| Total sales revenue | $ | 1,600,000 |
| Selling price per surfboard | $ | 400 |
| Variable selling expense per surfboard | $ | 40 |
| Variable administrative expense per surfboard | $ | 10 |
| Total fixed selling expense | $ | 480,000 |
| Total fixed administrative expense | $ | 450,000 |
| Merchandise inventory, beginning balance | $ | 100,000 |
| Merchandise inventory, ending balance | $ | 120,000 |
| Merchandise purchases | $ | 360,000 |
Required:
1. Prepare a traditional income statement for the quarter ended May 31.
2. Prepare a contribution format income statement for the quarter ended May 31.
3. What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter?
In: Accounting
In: Civil Engineering
A quarter circle of radius 100 mm lies on Quadrant II of a
coordinate plane with
reference radius at the origin. A rectangle is attached to the
quarter circle at Quadrant I
with base at the x-axis of width equal to 25 mm and height same as
the radius of the
quarter circle. Another rectangle with inverse dimension as the
previous is attached to the
quarter circle at Quadrant III.
a. What is the moment of inertia (m4) of the composite area with
respect to the x-axis at point O?
b. What is the moment of inertia (m4) of the composite area with
respect to the y-axis at point O?
c. What is the polar moment of inertia (m4) of the composite
area?
d. What is the centroidal moment of inertia (m4) of the composite
area?
e. What is the radius of gyration (mm) of the composite area with
respect to its
centroid?
In: Civil Engineering
Anthony Bucker, the CEO of Bucker’s, Inc. is currently reviewing a proposal to purchase a set of equipment that would add a unique candle holder, what is known as “Angel Chimes”, to the company’s production line. Bucker’s, Inc. has been manufacturing galvanize-coated buckets, pans, watering cans, flower pots & vases, and various sizes of trash-cans for home and garden use for the past 25 years. With this new addition to its product line, Bucker’s, Inc. would penetrate further into decorative home-goods markets.
Angel Chimes is a unique, brass-made candle-holder. It was originally introduced in Sweden and has become a popular Christmas product in the entire Europe. It makes a delightful Christmas gift that could be enjoyed by all ages as part of joyous memories. The heat from the four candles spins a carousel of angels causing them to lightly tap the bells generating charming tinkling sounds. Celine Barber, the marketing manager at Bucker’s, believes that Angel Chimes could be sold for $6 each and a volume of 10,000 units could be reached within its first year of inception.
The semi-automated machine to be used in the production of Angel Chimes can be purchased for $170,000, but it requires $30,000 additional spending on delivery and installation. The cost of the material is estimated to be 40% while labor and overhead expenses will run around 12% of the sales price. The annual sales figure is estimated to grow at 5% per year. The equipment is expected to worn-out totally in ten years and can be sold for $20,000 only. For tax purposes, the equipment qualifies for Five-Year MACRS property (the appropriate percentages are provided in the following table):
|
MACRS Recovery Allowance Percentages for Five-Year Property |
|
|
Ownership Year |
Recovery Percentage (%) |
|
1 |
20 |
|
2 |
32 |
|
3 |
19 |
|
4 |
12 |
|
5 |
11 |
|
6 |
6 |
Anthony finds the Angel Chimes project quite attractive at first glance; however, he is cautious in implementing any capital budgeting proposal that could be detrimental to his company and its common stocks. As such, he asks you to run an assessment of Angel Chimes project via most reliable decision criteria, i.e., NPV and IRR. Currently Bucker’s WACC to apply to an average risk project is 14% and the company is subject to a marginal tax rate of 34%.
(a) Compute the NPV and IRR of the above proposal assuming a 34% tax rate. What is your recommendation to Mr. Bucker?
Anthony Bucker, while a college dropout (mainly due to financial challenges his parents and himself had to face during the first two semesters of his college years) proved to be a wise and successful businessman during his 25 years of practice in the industry. With his exceptional vision on decorative home-goods design and production, Anthony was quick to recognize that this new equipment could be utilized to introduce various additional and equally attractive tinkling candle-holders with different concepts and figures. This, however, would require the acquisition of an additional pressing machine for $30,000 to produce the new figures and characters. This piece of equipment, if purchased, will also qualify for Five-Year MACRS property and will be sold for $5,000 at the end of 10 years.
Anthony doesn’t anticipate any cannibalization affect since these additional candle-holders will be in demand all year around while Angel Chimes are proven to be a unique Christmas-season item. Celine’s analyses in this regard indicates that Bucker’s Inc. should be able to sell 7,500 units of these additional candle holders in the first year at $5 each. For the following years, the sales are estimated to grow at 5% per year. The cost of the material will be 40% while labor and overhead expenses will be negligible since the additional production can be accomplished without any over-time expectations from the workers.
b.) Compute the NPV and IRR of the Angle Chimes proposal together with this additional modification/investment. What is your recommendation to Mr. Bucker when two compatible proposals are considered/evaluated together?
In: Finance
Waylon purchased a small apartment building in a working class neighbourhood. Much to his annoyance, Waylon is required to purchase certain types of property insurance for the building. He decides to purchase a basic fire insurance policy. One-year later, the building is hit by a meteorite. Which of the following is not covered by Waylon's insurance policy?
a) fire
b) lightning
c) specified types of explosions
d) falling objects
In: Finance
A cylindrical 6.00-kg reel with a radius of 0.60 m and a frictionless axle, starts from rest and speeds up uniformly as a 4.00-kg bucket falls into a well, making a light rope unwind from the reel (Fig. P8.36). The bucket starts from rest and falls for 5.00s. (a) What is the linear acceleration of the falling bucket? (b) How far does it drop? (c) What is the angular acceleration of the reel?
In: Physics
Orthopedic. 1. An 8-year-old boy has been brought to the orthopedic clinic by his caregiver after falling from a tree. The child has a broken arm that has been x-rayed and is now being cast. A. What should this child and the caregivers be taught regarding care of the cast? B. What instructions should the nurse give the caregiver regarding things to report to the care provider?
In: Nursing